The HD-1 display is WAY too small to see most video defects, including the jaggies. If a software fix existed, it would have to decompress / recompress the video to actually "fix" it. In theory, a post processing filter could be developed that would remove the jaggies during playback.

I zoomed to 2000% and can not find the jaggies. The HD1 can't zoom while output to component video, but I also can't find the jaggies in my 720p LCD projection TV. You know, it is very easy to see in computer screen even at 100% zoom.

So I think if a software couldplay the files just using the "bug" decoder as the same in HD1, the output is no bug.